Answer: Administration must clear up the questions about Tiyan land deal

Gov. Eddie Calvo's recent approval of the purchase of Tiyan land from Core Tech International continues to raise questions, including why the government would buy land it already owns.

While the governor had the legal authority to sign the deal with Core Tech, the agreement should have gone through a much more rigorous and transparent review. It also should have gone through the government's procurement process, to ensure the community is getting the best deal possible.

The island needs to address crowding in the schools, and there is a need for a new central high school, but there was no need to rush this deal forward.

The initial purchase price tag for the Tiyan properties amounts to $56 million, but the cost will increase to $160 million because the government is making annual payments to include 7.19-percent interest, plus maintenance and insurance, according to documents released by the attorney general's office. The Pacific Daily News sought the documents in a Freedom of Information Act request.

Core Tech bought the property in 2007 for $11 million from a local family, then leased it to the government of Guam after an agreement signed by then-Gov. Felix Camacho in 2009.

In December 2011, the Calvo administration agreed to delete language in the agreement that would have allowed GovGuam to opt out of the lease. Calvo has said he did it because Core Tech made significant improvements to the property.

That's not a good enough reason for deleting the clause.

In addition to the property that GovGuam is buying outright, it also is to pay Core Tech up to $23.8 million for an adjacent property for the Guahan Academy Charter School. Core Tech doesn't own the charter school location; it holds a 30-year lease on the land from the A.B. Won Pat Guam International Airport Authority. The government, essentially, is buying land that it already owns.

Public Auditor Doris Flores Brooks has announced her office is looking into tax credits granted to Core Tech. Brooks said the audit will include comparing the Core Tech purchase with the costs to build and finance other Guam public schools in recent years.

Questions abound about this deal and whether it was done right and in the best interest of the community. The administration has a responsibility to answer these questions -- and without the usual political smokescreens.